Auto Insurance In California: Geico's New Venture

GEICO offers auto insurance in California, but there is no longer an option to purchase it in person or over the phone. Instead, customers can get a quote and purchase a policy online or through the GEICO mobile app. The company has closed all 38 of its offices in the state, resulting in over 100 layoffs. GEICO auto insurance in California offers features such as car insurance discounts, emergency road service, and 24/7 customer support.

GEICO's California auto insurance requirements

GEICO is one of the largest auto insurance companies in the country, and it offers auto insurance in California. However, it has closed all of its physical locations in the state and no longer sells insurance over the phone, so California policies must be purchased online or through the GEICO mobile app.

California has some unique car insurance laws that make insuring a vehicle there different from other states. The state requires drivers to carry at least the following auto insurance coverages:

• Bodily injury liability coverage: $15,000 per person / $30,000 per accident minimum
• Property damage liability coverage: $5,000 minimum
• Uninsured motorist bodily injury coverage: $15,000 per person / $30,000 per accident minimum
• Uninsured motorist property damage coverage: $3,500 minimum

While these are the minimum coverages California requires you to have, everyone's insurance needs are unique. GEICO offers a Coverage Calculator to get a personalized recommendation.

California also offers a Good Driver Discount of at least 20% for drivers who meet certain criteria. To qualify as a Good Driver in California, a driver must:

• Have verifiable license experience for at least the previous three years, or have been licensed in the US or Canada for the most recent 18 months with verifiable experience, and certify the previous 18 months of license experience in any jurisdiction outside of the US or Canada
• Not have accrued more than one Department of Motor Vehicles point in the last three years (a point is usually assigned for a vehicle code violation or a "principally at-fault" accident)
• Not have been involved in a "principally at-fault" accident that resulted in injury or death
• Not have had a conviction in the past ten years for specific driving under the influence (drug or alcohol) related driving offenses or specific felony convictions

California also offers a Good Student Discount for teen or young adult drivers who meet the following criteria:

• Have eight years or less of driving experience
• Are enrolled full-time in an academic home study program, high school, college, or university
• Have at least a B average or its equivalent

Discounts on California auto insurance

Yes, GEICO is writing auto insurance in California. The company offers a range of discounts on California auto insurance, including:

• Good Driver Discount: In California, a good driver is defined as someone who has verifiable license experience for at least the previous three years, has not accrued more than one Department of Motor Vehicles (DMV) point in the last three years, and has not had a conviction for specific driving under the influence (DUI) or felony convictions in the past ten years. Good drivers can receive at least a 20% discount on their auto insurance premium.
• Good Student Discount: Teen or young adult drivers in California with eight years or less of driving experience who are enrolled in a full-time academic program and have at least a B average or its equivalent are eligible for this discount.
• Defensive Driving Discount: GEICO also offers a defensive driving discount, although the details of this discount are not specified.

In addition to GEICO, other insurance companies in California, such as Mercury Insurance, also offer various discounts to lower auto insurance rates. These include:

• Anti-Theft Feature Discount
• E-Signature Discount
• Good Driver Discount
• Good Student Discount
• Multi-Policy Discount
• Pay-in-Full Discount

It is worth noting that California has banned the use of credit history as a rating factor in auto insurance, which means that those with a poor credit history do not have to worry about it affecting their insurance rates.

California auto insurance waiting period

In California, there is no state-mandated waiting period for auto insurance to take effect. However, individual insurance companies have been known to impose waiting periods ranging from 10 to 30 days, with 14 days being the most commonly reported duration. These waiting periods are decided by the insurance companies themselves and are not a requirement of the state.

The waiting periods implemented by insurance companies have caused frustration among new car owners in California, who are unable to drive their vehicles until their insurance coverage begins. This issue has been further exacerbated by the lack of official communication from insurance companies, leaving customers confused and unsure of what to do.

The California Department of Insurance has received numerous complaints regarding these waiting periods, with Insurance Commissioner Ricardo Lara threatening enforcement action against insurance companies that engage in such practices. Lara has stated that these waiting periods create unacceptable and dangerous barriers for qualified drivers trying to obtain auto insurance.

It is important to note that not all insurance companies in California have implemented waiting periods. Some companies, such as Progressive, Toggle, and AAA, have been known to provide same-day or immediate coverage. Additionally, the waiting periods do not seem to be uniformly applied, as some individuals have reported obtaining coverage from companies with reported waiting periods without having to wait.

To address the issue of waiting periods and other stalling tactics, Commissioner Lara issued a bulletin reminding insurance companies of their obligations under California law. The bulletin outlined several improper requirements that insurance companies must refrain from imposing on applicants, such as lengthy questionnaires, verification of employment or school information, and providing copies of utility bills or vehicle registrations.

In response to the bulletin and the threat of enforcement action, several insurance companies have ceased their waiting periods and other questionable practices. While the California Department of Insurance continues to monitor the situation, it encourages individuals experiencing issues with obtaining or renewing auto insurance to contact them directly for assistance.

California auto insurance laws for new residents

California has a high population, with many residents driving, using public transit, or biking. The state has established strict guidelines to regulate commuter and pedestrian safety. If you're moving to California and bringing your car, you'll need to know the state's auto insurance laws.

California law requires all drivers to have auto insurance. The state's auto insurance requirements are simple and direct. It is mandatory for every driver in California to buy car insurance. Additionally, all drivers must carry proof of insurance coverage when driving. Failure to maintain adequate insurance coverage may result in severe fines.

When queried by a law enforcement official, drivers are legally required to provide proof of insurance. This proof can be in the form of an insurance ID card or a digital version on a smartphone. It must be presented during traffic stops, at the scene of an accident, or when renewing vehicle registration.

Minimum Insurance Requirements in California

• $15,000 per person in bodily injury liability coverage
• $30,000 per accident in bodily injury liability coverage
• $5,000 in property damage liability coverage

Alternative Types of Financial Responsibility

Drivers in California can choose to opt out of the state's minimum insurance requirements by utilising one of the following alternative types of financial responsibility:

• Cash Deposit: A $35,000 cash deposit into a savings account, with account details submitted to the DMV.
• Certificate of Self-Insurance: For individuals with more than 25 automobiles registered in their name, obtained from the DMV.
• Surety Bond: A $35,000 surety bond guaranteeing payment of bodily injury and property damage charges in case of an accident.

Penalties for Driving Without Insurance in California

Driving without insurance in California is illegal and can result in the following penalties:

• First Offence: $100-$200 fine
• Second Offence: $200-$500 fine
• Other Penalties: Suspension of license and registration, and requirement to file an SR-22 certificate with the state.

California's Low-Cost Auto Insurance Program (CLCA)

California offers the CLCA program to provide affordable insurance to low-income residents. To qualify, a driver must meet specific criteria, including having a valid California driver's license, meeting financial guidelines, owning a car worth less than $25,000, and having a clean driving record. The CLCA offers liability coverage at lower levels than the state's minimum requirements, with rates ranging from $244 to $966 per year.

California Car Insurance Grace Period

California allows a 30-day grace period for new car insurance. This is the amount of time you have after purchasing a vehicle to buy insurance and provide proof of active coverage to the California DMV. If you already have an auto insurance policy, you have up to 45 days to either add your new vehicle to it or cancel it and obtain a new policy.

California Registration Information

When moving to California, you must register your vehicle within 20 days of establishing residency. This involves completing an application, submitting the necessary documents, and providing evidence of California Smog Certification and odometer mileage certification, if applicable.

Understanding California's auto insurance laws is crucial for new residents bringing their vehicles to the state. By following the requirements and maintaining adequate insurance coverage, drivers can protect themselves financially in case of an accident and avoid penalties for non-compliance.

California auto insurance claims and repairs

California has some unique car insurance laws that differ from other states. California requires drivers to carry at least the following auto insurance coverages:

• Bodily injury liability coverage: $15,000 per person / $30,000 per accident minimum
• Property damage liability coverage: $5,000 minimum
• Uninsured motorist bodily injury coverage: $15,000 per person / $30,000 per accident minimum
• Uninsured motorist property damage coverage: $3,500 minimum

California law protects customers from the more unscrupulous acts of insurance companies. If your car was damaged in an accident and you’ve filed for insurance coverage, you are entitled to certain rights. California law specifically provides that auto insurance companies cannot require customers to go to a particular repair facility. The insurer might recommend a particular auto repair shop to protect their bottom line, but California law considers this an unfair practice, preferring to give car owners the freedom of choice.

California law requires auto insurance companies to provide customers with a written estimate of the repair costs, including an explicit breakdown of the repairs and costs for restoring the vehicle to its prior condition. The insurance company is responsible for informing you about your rental car coverage while your vehicle is under repair. They must advise you as to whether your plan includes rental car coverage, the extent of the coverage, the daily rate they are willing to cover, and how many days you can rent a vehicle under your policy.

To file a car insurance claim in California, you must promptly notify your insurance company. If you have an auto insurance policy, notify your own insurer first, regardless of who was at fault for the accident. If you are uninsured, you can file a claim with the other party’s insurer if you believe the other party was solely or partially at fault. California state law requires you to notify the DMV within 10 days of an accident if anyone was killed or injured, or if the accident caused more than $1,000 in property damage.

Frequently asked questions